Today, 4/22/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.07% (5.03% in the southeast), unchanged from 5.07% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.39%, down just barely from 4.40% last week. A year ago the 30 year rate was 4.80%.
Though interest rates did not move much, they are still very low, historically speaking. So it remains a good time to buy as we enter the summer season. The National Association of REALTORS has reported that across the country the sales of existing homes is up again, and the same goes for here in Florida where the Florida Association of REALTORs has said we are in our 19th month of increases in existing home sales. So little-by-little that backed up inventory is disappearing and those distressed properties (short sales and foreclosures) are also being purchased and taken off the market. Keep in mind that most builders have cut way back and this is also helping to keep the inventories from increasing due to new homes entering the marketplace. This bodes well for the stabilization of home prices at some point in the future.
Even home builder confidence is coming back though and is at its highest level since September 2009. Nice to hear that builders are being optimistic, especially after the past few years of pain.
The home buyer tax credit is set to end very soon and it will be interesting to see if its demise will have any effect on the market. My guess, and it is just a guess, is that here in Zephyrhills, Florida we will see few effects from the end of this program. Low prices and low interest rates seem to be trumping the tax credit in most of my deals.
Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.
If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.
If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.
I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You are also welcome at my webpage: www.jelwell.century21bnr.com
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